The Canadian Real Estate Association has downgraded its home sales forecast for this year and next as fewer buyers jump into the market.
It now forecasts the national average home price edging down 0.2 per cent from 2022 to $702,409 this year before rising to $723,243 in 2024.One of the biggest factors weighing on prices are new listings, which in many markets remain below pre-pandemic levels.
“Looking further out, there’s also a growing consensus that rates will not just be higher, but likely for longer — well into 2024.”Article contentCREA’s forecast was released at the same time as its national housing figures for June, which showed seasonally-adjusted sales ticked up 1.5 per cent from May to 40,449.Meanwhile, the average price reached $709,218, up 6.7 per cent from June 2023. On a seasonally-adjusted basis, it was $709,103, down 0.7 per cent from a year prior.
“Housing markets appear to be stabilizing heading into the summer following some big ups and downs over the last year,” CREA chair Larry Cerqua said in a news release.Article content BMO Capital Markets economist Shelly Kaushik saw th June figures as proof that the market is continuing to recover and shrugged off the Bank of Canada’s June rate hike.Her view was informed by the country notching its fifth straight monthly sales increase with activity levels firmly in the pre-pandemic range.
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